Investment Rating - The report initiates coverage with an "Outperform" rating for the company [5]. Core Insights - The company has strategically optimized its revenue mix, leveraging AI to drive a recovery in high-speed growth. Revenue grew from RMB 3.96 billion in 2019 to RMB 9.06 billion in 2021, with a CAGR of 51.3%. However, revenues declined in 2022 and 2023 due to the pandemic and strategic CDN reductions, recording RMB 8.18 billion and RMB 7.05 billion respectively [2][35]. - The company is a leading cloud service provider in China, focusing on enhancing technology, products, and services. The shift towards AI and revenue optimization has yielded significant results, with expectations for public cloud revenue to grow rapidly in the coming years [4][40]. Summary by Sections Company Overview - Founded in 2012, the company has built a comprehensive cloud infrastructure and operations system, offering over 150 solutions to more than 500 premium clients. Its business is divided into public and industry cloud services, with a strong focus on AI-driven product upgrades [1][36]. Financial Performance - In 2023, the company reported a gross profit of RMB 850 million, a 97.9% increase YoY, with a gross profit margin (GPM) of 12.1%, up 6.8 percentage points. The net profit attributable to shareholders was RMB -2.176 billion, an 18.1% improvement YoY [2][35]. AI and Strategic Initiatives - The establishment of an AI R&D center in 2023 has focused on applications, algorithms, and platforms. The company has formed strategic partnerships to enhance its AI capabilities, with AI revenue reaching RMB 360 million in Q3 2024, accounting for approximately 31% of public cloud revenue [3][48]. Revenue Forecast - The company anticipates public cloud revenue growth of 15.0%, 20.0%, and 22.5% YoY from 2024 to 2026, while industry cloud revenue is expected to grow at a stable rate of 3.0%, 4.0%, and 5.0% YoY during the same period. The gross profit margin is projected to rise to 17.0%, 21.0%, and 24.0% for 2024-2026 [4][40]. Target Price and Valuation - The forecasted revenues for 2024-2026 are RMB 7.784 billion, RMB 8.902 billion, and RMB 10.405 billion, representing YoY growth of 10.5%, 14.4%, and 16.9%. The target price is set at HKD 7.63, based on a 2025 price-to-sales ratio of 3.0x [5][40].
金山云：首次覆盖：业务结构优化与AI共振，生态协同优势有望加速业绩增长